What is an SA106 form?
The SA106 is a supplementary form to your Self Assessment tax return that you’ll need to submit if you are a UK tax resident, but need pay tax on foreign income.
Who should fill out the SA106?
You need to fill out the SA106 if you receive:
- interest from overseas savings
- income from land and property abroad
- income from overseas pensions
- dividends from foreign companies
- foreign tax paid on employment, self-employment and other income
You do not need to fill this form if your total income from your overseas property, including UK property or furnished holiday letting income, is £1,000 or less–it is exempt as part of your Property income allowance.
Do not fill this form for:
- foreign income earned by your business or partnership, instead use the SA101: Additional Income or SA104: Partnership form.
- foreign employment income – use the SA102: Employment forms to report this income and only use the SA106 form to claim the foreign tax paid on this income
- income from furnished holiday lettings in the European Economic Area – use the SA105: UK Property form unless you’re taxable on the remittance basis
What if I already paid overseas income tax in a different country?
If you’ve already paid income tax in an overseas country, you can claim Foreign Tax Credit Relief (FTCR) if all of the following applies:
- you’re a UK resident
- the foreign income tax was charged correctly under that country’s law, meaning you took the appropriate steps (such as filing an overseas tax return) to claim all available allowances, relief and exemptions in that country.
- the amount of FTCR does not exceed UK tax on the same item of income or gains
- there’s a double taxation agreement (DTA) and foreign tax relief is restricted to the minimum foreign tax payable in the agreement
You can find out if the overseas country has signed a DTA here.
How do I fill in the SA106?
You can find the SA106 form here. If you usually file a Self Assessment tax return every year, HMRC might also send it to you.
The HMRC also provides detailed SA106 guidelines for each item on the form.
The SA106 isn’t the easiest to understand–this is why many turn to Self Assessment software.
With GoSimpleTax, the complexities are simplified so you can avoid any foreign income tax return penalties. Your Self Assessment will be completed swiftly and accurately. It even offers you tax-saving suggestions, meaning you’ll be able to minimise the amount you owe.
How do I submit the SA106?
You can submit the SA106 alongside your SA100–it cannot be filed by itself.
Do I need to use an SA106 if I file my tax return online?
No, you will only need to fill out the SA106 if you submit your tax return on paper.
We highly recommend filing online–the deadline for filing online is 3 months later than the deadline for paper returns. It is much more straightforward online, and the sections you need to fill out will automatically be supplied. Our software will sift through your income and expense details and provide only the sections relevant to you.
With GoSimpleTax, you can access and update your records at any point up until the deadline, making it easy to track your income and expenditures as you go. Start your free trial today!
Take the stress out of doing your tax return
Automation and one-click shortcut integrations mean completing a self assessment with our software is a simple, quick and stress-free process.
GoSimpleTax provides you with a clear step-by-step process which means your tax return will be submitted faultlessly and painlessly.
Our analysis tools proactively gives prompts for claimable expenses that you may not have been aware of so you save money.
Automatic calculations ensure your tax return is submitted accurately so you don’t have to worry about making mistakes.